Building Industry Partners (BIP) forms new division

May 11, 2011

Building Industry Partners (BIP), a private equity investment and mergers & acquisitions advisory firm specializing in the middle-market U.S. building industry, has announced the formation of its Debt Advisory & Placement Practice, which will leverage its relationships with the lender community to advise building products companies in restructuring and/or refinancing existing loans, as well as sourcing and optimizing terms on new senior, mezzanine and/or other debt capital.

BIP added this service to its existing advisory practice because of ongoing feedback from building products company owners in the current market environment regarding their desire to take proactive steps to counter pressure from existing lenders and/or seek out loan financing on better terms. The goal of BIP’s practice is to arm middle-market companies with the market knowledge and technical expertise necessary to effectively renegotiate and/or restructure existing bank or other loans and to proactively source alternative debt financing.

“Without the proper expertise, borrowers often enter into loan agreements, which over-collateralize the debt, charge excessive fees and institute covenants that are easy to default on in the current market environment,” said Jason Fraler, who will head BIP’s Debt Advisory & Placement Practice. “Bad loans can put your business at risk, restrict future growth and unnecessarily put a principal’s personal wealth at risk. The placement process needs to be thorough, tapping a large number of the right lenders to maximize options and drive more competitive terms/pricing.”

Headquartered in Dallas, BIP provides equity capital to private companies, primarily with $25 million to $500 million in sales, for purposes of growing their businesses organically or through buy-and-build acquisition strategies. BIP also provides equity capital to proven executives and management teams to support them in building their own business via management buyout or acquisition of platform businesses. The firm was instrumental in the formation of U.S. LBM Holdings, one of the industry’s fastest growing lumberyard chains. The firm’s principals include Matt Ogden, Lonnie Schield and Jason Fraler.